One of the biggest challenges first-time buyers (FTBs) face is getting a mortgage deposit together.
Saving a large sum of cash while covering all your living expenses during a cost-of-living crisis is no mean feat.
However, having a good plan and clear goals can make this daunting task more achievable.
You’ll need a deposit that’s 10% of the value of the property you wish to buy. Bear in mind that you’ll also have to pay legal, surveying fees and Stamp Duty.
Once you know how much money you need to save, take a deep dive into your income and expenditure. Identify what you can trim back on (nights out) and cut out altogether (subscriptions, gym memberships).
If you’re buying with another person, discuss your income and debts. It’s important you both lay your (credit) cards on the table, as you’ll have to declare your full financial history to your lender.
Download a budgeting app (free versions are available) to help monitor your incomings and outgoings and alert you to any overspends.
Set up an automatic transfer so that the amount you intend to save every month goes straight into a separate account on the day you get paid.
If there’s a chance the Bank of Mum and Dad could lend a hand, now’s the time to talk. Ensure everyone is clear as to whether the money is a gift or a loan so it doesn’t become a source of conflict later. Note: if the money you’re given is a loan, you’ll need to tell your lender. Read our article on the Bank of Mum and Dad here.
Also, explore the option of living with a friend or family member to reduce or eliminate your rental bill while you’re saving.
When choosing an account for your deposit, shop around for the best deal. Comparison websites such as bonkers.ie can help you instantly compare which banks will give you the best return on your savings.
Looking to take your first steps onto the property ladder? Contact us here at Liberty Blue today.